Business, 06.10.2019 10:30, mandi795

Consider the utility function u(x1; x2) = 10x1 x21 + x2, again with the budget constraint p1x1 + p2x2 = i. (a) for what bundles (x1; x2) is this utility function monotonically increasing? (b) form the lagrangian associated with this utility maximization problem, nd the rst-order conditions, and solve for the demand function for good x1. (c) find the own price elasticity of demand for good 1. now assume p2 = 1. when (i. e., for what prices p1) is demand inelastic? unit elastic? elastic?

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Consider the utility function u(x1; x2) = 10x1 x21 + x2, again with the budget constraint p1x1 + p...